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Leveraging open-standard interorganizational information systems for process adaptability and alignment: An empirical analysis

Xiaodie Pu (Nottingham University Business School China, University of Nottingham, Ningbo, China)
Alain Yee Loong Chong (Nottingham University Business School China, University of Nottingham, Ningbo, China)
Zhao Cai (Nottingham University Business School China, University of Nottingham, Ningbo, China)
Ming K. Lim (Centre for Business in Society, Coventry University, Coventry, UK)
Kim Hua Tan (Nottingham University Business School, University of Nottingham, Nottingham, UK)

International Journal of Operations & Production Management

ISSN: 0144-3577

Article publication date: 25 September 2019

Issue publication date: 20 November 2019

733

Abstract

Purpose

The purpose of this paper is to understand the value creation mechanisms of open-standard inter-organizational information system (OSIOS), which is a key technology to achieve Industry 4.0. Specifically, this study investigates how the internal assimilation and external diffusion of OSIOS help manufactures facilitate process adaptability and alignment in supply chain network.

Design/methodology/approach

A survey instrument was designed and administrated to collect data for this research. Using three-stage least squares estimation, the authors empirically tested a number of hypothesized relationships based on a sample of 308 manufacturing firms in China.

Findings

The results of the study show that OSIOS can perform as value creation mechanisms to enable process adaptability and alignment. In addition, the impact of OSIOS internal assimilation is inversely U-shaped where the positive effect on process adaptability will become negative after an extremum point is reached.

Originality/value

This study contributes to the existing literature by providing insights on how OSIOS can improve supply chain integration and thus promote the achievement of industry 4.0. By revealing a U-shaped relationship between OSIOS assimilation and process adaptability, this study fills previous research gap by advancing the understanding on the value creation mechanisms of information systems deployment.

Keywords

Acknowledgements

This work was supported by the National Natural Science Foundation of China (NSFC: 71801204) and by the Major Collaboration Grant (Reference No. 2017D10032) funded by the Ningbo Science and Technology Bureau.

Citation

Pu, X., Chong, A.Y.L., Cai, Z., Lim, M.K. and Tan, K.H. (2019), "Leveraging open-standard interorganizational information systems for process adaptability and alignment: An empirical analysis", International Journal of Operations & Production Management, Vol. 39 No. 6/7/8, pp. 962-992. https://doi.org/10.1108/IJOPM-12-2018-0747

Publisher

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Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited

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